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Templeton Global Bond Fund Has First Month of Redemptions in Three Years - Bloomberg
Thanks for the info link..............we may add our name to the list and also with LSBDX. Can't knock, that for bond fund managers; that it has not been a fun year to determine this market sector either. Looking at all of these areas for some shuffling. Regards, Catch
This is so backward. My guess is that the majority of folks pulling money from this fund have not been in it very long. Those of us who have been with Hasenstab for 6-7 years understand that this fund will have periods of underperformance. Assets have gone from 2.6 billion to 26 billion in three years. Do you think a lot of this growth is maybe hot money, folks looking to make a killing of the hottest fund? Hot dollars chasing hot funds are usually the first to leave when the fund has a cold spell, as if the manager suddenly took dumb pills. The same thing happened to Loomis back in 2008-early 2009. Some shareholders panicked, pulled their dollars, and lost out on the huge rebound. I remember how commentators suggested that Dan Fuss and Kathleen Gaffney had somehow "lost it", then one year later, they were talked about as if they were gods. Both bond funds have proven, consistent investment styles. All managers will have periods of underperformance. My suggestion is for shareholders of both is to sit still, be patient, and wait. Folks who throw money when a fund is hot and bail at the first sign of weakness will never enjoy the fruits of these managers' talents.
I don't consider either bond fund to be dogs and they do have fine records. We have held both for numerous years; but both were sold at this house during the early stages of the market melt 2008; with PTTRX being the only bond fund we retained, and held through the 2008/2009 turmoil and continue to hold today. We had already off-loaded the majority of our equity positions in June, 2008. TPINX, TEGBX or whichever class of this fund one chooses to use for reference maintained farily well in the 2008/09 market melt and was somewhat in line with PTTRX. LSBDX was the broad based bond fund that really took it on the chin during this period.
For those who choose to use bond mutual funds as trading tools; I personally can't imagine using the Templeton or Loomis funds for such a purpose. If one wants to "play" the bond markets using mutual funds, index funds or etf's; there are surely funds for this purpose, yes ?
My view/guess as to why monies may have left Templeton would be those who are not pleased with the 2011 performance.........and are looking down the road with the feeling that 2012 won't be much different from 2011 and that performance may be the same. I would not be surprised that monies that have left Templeton have not gone into other bond funds.
I don't regard monies that have left Templeton to be individual investors; but perhaps pension funds, if they use such funds for investment purposes. Such redemptions by pension funds for a rework of their portfolio holdings could have a large impact. From my own "by chance" reading; pension funds are moving some portfolio monies to hedge funds (good luck with this) to "beef up" the returns.
You are well aware that attempting to make some money via the broad bond markets is no less work than attempting to profit from equity markets. The transitions or movements in broad based bond funds is generally a slow motion event when compared to equity areas; but no less a movement that should be monitored.
If our house did not think that Templeton or Loomis bond funds would not be of value; we would not hold them today. But, some of the monies in our holdings of these funds may be reduced.
And yes, not unlike any of us here; the fund managers will have their periods of disappointment and mis-adventures of being in the wrong place at the wrong time.
Comments
Thanks for the info link..............we may add our name to the list and also with LSBDX.
Can't knock, that for bond fund managers; that it has not been a fun year to determine this market sector either.
Looking at all of these areas for some shuffling.
Regards,
Catch
I don't consider either bond fund to be dogs and they do have fine records. We have held both for numerous years; but both were sold at this house during the early stages of the market melt 2008; with PTTRX being the only bond fund we retained, and held through the 2008/2009 turmoil and continue to hold today. We had already off-loaded the majority of our equity positions in June, 2008.
TPINX, TEGBX or whichever class of this fund one chooses to use for reference maintained farily well in the 2008/09 market melt and was somewhat in line with PTTRX. LSBDX was the broad based bond fund that really took it on the chin during this period.
For those who choose to use bond mutual funds as trading tools; I personally can't imagine using the Templeton or Loomis funds for such a purpose.
If one wants to "play" the bond markets using mutual funds, index funds or etf's; there are surely funds for this purpose, yes ?
My view/guess as to why monies may have left Templeton would be those who are not pleased with the 2011 performance.........and are looking down the road with the feeling that 2012 won't be much different from 2011 and that performance may be the same. I would not be surprised that monies that have left Templeton have not gone into other bond funds.
I don't regard monies that have left Templeton to be individual investors; but perhaps pension funds, if they use such funds for investment purposes. Such redemptions by pension funds for a rework of their portfolio holdings could have a large impact. From my own "by chance" reading; pension funds are moving some portfolio monies to hedge funds (good luck with this) to "beef up" the returns.
You are well aware that attempting to make some money via the broad bond markets is no less work than attempting to profit from equity markets. The transitions or movements in broad based bond funds is generally a slow motion event when compared to equity areas; but no less a movement that should be monitored.
If our house did not think that Templeton or Loomis bond funds would not be of value; we would not hold them today. But, some of the monies in our holdings of these funds may be reduced.
And yes, not unlike any of us here; the fund managers will have their periods of disappointment and mis-adventures of being in the wrong place at the wrong time.
Respectfully,
Catch